Capital Market Task Force Submits Report: Key Recommendations Revealed!
The task force formed to study the challenges facing the capital market has submitted its report to Finance Minister Rameshwar Khanal. The report contains several suggestions aimed at boosting investment and improving the overall health of the stock market.
One of the key recommendations in the report is to remove the maximum single customer limit of 25 crores for margin loans. This change could potentially increase liquidity and encourage more participation in the equity market.
Another significant suggestion is to abolish the provision that restricts banks and financial institutions to invest in the shares and debentures of listed organizations for a period longer than one year. This proposed change aims to provide more flexibility in investment strategies and potentially attract more institutional investors to the Nepalese stock exchange. This could further stabilize the market.
Finance Minister Khanal formed the four-member task force on October 3rd, under the coordination of Rupesh KC, the acting executive director of the Securities Board of Nepal (SEBON). The task force was given a mandate to submit suggestions and an implementation plan within five days.
The task force included Director Sharan Adhikari, who also serves as the Board Secretary of Nepal Rastra Bank, and Niranjan Phuyal, the acting executive director of NEPSE. Sharad Niraula, the Undersecretary of the Ministry of Finance, served as the member secretary of the task force. The swift action of the task force signals a commitment to addressing issues facing the Nepalese stock market and promoting financial stability. This aims to create a positive environment for both investors and the economy.
